Lenskart Prepares for $1 Billion IPO, Initiates Talks with Bankers

Eyewear retailer Lenskart seems to have taken a significant step toward going public by initiating discussions with bankers for its initial public offering (IPO). The company aims to raise between $750 million and $1 billion, according to sources cited by Moneycontrol. The public listing is expected toward the end of the financial year 2025-26 (FY26) and seeks to value Lenskart at $7-8 billion.

Lenskart is a global omnichannel retailer that was founded in 2010 by Peyush Bansal, Amit Chaudhury, and Sumeet Kapahi. With over 2,500 stores worldwide, including 2,000 in India, the company claims to have established a customer base exceeding 20 million. Its international presence spans markets such as the UAE, Singapore, and Japan. 

The company’s financial performance highlights its growth trajectory. For FY24, Lenskart reported a revenue increase of 43% year-on-year to ₹5,428 crore from ₹3,788 crore in FY23. Despite this growth, the company posted a net loss of ₹10 crore, significantly narrowed from ₹64 crore in the previous year. This improvement reflects Lenskart’s efforts to enhance operational efficiency as it gears up for its market debut.

Lenskart’s plans come amidst a resurgence in India’s IPO market, with numerous startups preparing to go public. If successful, the company will join the ranks of new-age firms like Swiggy, Zomato, and Paytm that have previously debuted on Indian stock exchanges. Lenskart is also part of a larger wave of upcoming IPOs, with at least 25 startups, including Zepto, PhysicsWallah, and Pine Labs, expected to hit the bourses in 2025.

The broader startup ecosystem has seen renewed interest from investors. Lenskart itself raised $200 million in June 2023 from investors such as Temasek and Fidelity, showcasing strong market confidence. The company has also invested in technology and innovation, acquiring startups like Tango Eye, an AI-based computer vision firm, and the Japanese eyewear brand Owndays in a deal valued at $400 million.

The appointment of Abhishek Gupta, former CFO of Oyo, as Lenskart’s new chief financial officer may signal the company’s intent to ensure smooth IPO execution. The move aligns with industry practices where companies bolster their leadership teams ahead of significant financial milestones.

In Conclusion

India’s IPO landscape has been gaining momentum, with 13 startups going public in 2024 and raising over ₹29,000 crore collectively. Lenskart’s IPO represents a pivotal moment for the company and the broader retail sector. By leveraging its strong operational foundation, global presence, and innovative offerings, the eyewear giant aims to cement its position as a leader in the industry. As the fiscal year progresses, all eyes will be on Lenskart’s journey to the public markets, a move that could set a benchmark for other startups looking to follow suit.